The Impact of Inflation

Oleh pleaceid

High inflation can have a negative impact on everyone. (Photo: Pexels)Caption: High inflation can have a bad impact on everyone. (Photo: Pexels)
High inflation can have a negative impact on everyone. (Photo: Pexels)Caption: High inflation can have a bad impact on everyone. (Photo: Pexels)

Every country experiencing inflation will certainly bring up various negative impacts. Almost all aspects of society will also feel the impact and of course it can increase the burden of life. Below are some of the impacts of inflation as follows:

1. Against Income

If the price of food and shelter continues to increase due to inflation, the real income of the people will continue to decrease. For example, previously the price of one serving of chicken noodles was only Rp. 8,000. However, after inflation occurs and traders make adjustments to prices, the price of one serving of chicken noodles will be Rp. 10,000.

2. Against Export Value

A country’s ability to export will decrease when experiencing inflation. Export costs will become more expensive and also the competitiveness of exported goods and other commodities will decrease which will result in reduced foreign exchange earnings.

3. Against the Interest to Save and Invest

Associated with decreased income, inflation will also reduce a person’s interest in saving and investing. The interest from savings that is too small makes it better for many people to keep it for themselves or use it for various consumptive purposes. Investment costs that continue to increase will also reduce one’s interest in investing.

4. Against Property Value

Property values ​​will be greatly affected by inflation. If the value of inflation continues to increase, it will be increasingly difficult for you to buy a property. Take advantage of every opportunity that exists when inflation is still low to buy your dream property.

5. Regarding Staple Goods Price Calculation

With the occurrence of inflation will result in the calculation of the determination of the price of basic goods becomes more difficult. Prices of staple goods that continue to increase will result in a country’s economic growth slowing down and even stopping.

That’s the definition and some of the best ways to deal with inflation. Even though inflation cannot be stopped, its increase can still be slowed down and reduced. Make sure you buy a house first when the inflation rate is still low so that the price of the property you want is still cheaper and doesn’t increase.

Find more complete home options in  the Property List  and  Reference Guide about properties from


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